INDCs will drive global climate finance growth

2015 ◽  
Keyword(s):  
Global Economy ◽  
Global Climate ◽  
Capital Allocation ◽  
Full Potential ◽  
Climate Finance ◽  
Public Provision ◽  
Financial Flows ◽  
Content Type ◽  
Climate Action ◽  
Nationally Determined Contributions

Significance In preparation, 146 countries submitted climate action plans that are ambitious enough to allow limiting global warning below 2 degrees Celsius. The 'Intended Nationally Determined Contributions' (INDCs) cover 86% of the global economy and areas of high demand for financial flows. Announcements by multilateral development banks (MDBs) and the Green Climate Fund (GCF) suggest increasing public provision of climate finance. Impacts The announced plans will help cut global CO2 emissions by 9% by 2030 compared with 1990 levels. Specific pledges such as India's commitment to generate 40% of energy from non-fossil fuel sources by 2030 will drive capital allocation. Climate financing may become less fragmented, though the GCF will require more years to deliver at full potential.

scholarly journals The risk of carbon leakage in global climate agreements

2020 ◽  
Author(s):  
Tobias Nielsen ◽  
Nicolai Baumert ◽  
Astrid Kander ◽  
Magnus Jiborn ◽  
Viktoras Kulionis
Keyword(s):  
Climate Change ◽  
Kyoto Protocol ◽  
Global Climate ◽  
Developed Countries ◽  
Carbon Leakage ◽  
Policy Makers ◽  
Climate Agreements ◽  
Climate Action ◽  
The Usa ◽  
Nationally Determined Contributions

Abstract Although climate change and international trade are interdependent, policy-makers often address the two topics separately. This may inhibit progress at the intersection of climate change and trade and could present a serious constraint for global climate action. One key risk is carbon leakage through emission outsourcing, i.e. reductions in emissions in countries with rigorous climate policies being offset by increased emissions in countries with less stringent policies. We first analyze the Paris Agreement’s nationally determined contributions (NDC) and investigate how carbon leakage is addressed. We find that the risk of carbon leakage is insufficiently accounted for in these documents. Then, we apply a novel quantitative approach (Jiborn et al., 2018; Baumert et al., 2019) to analyze trends in carbon outsourcing related to a previous international climate regime—the Kyoto Protocol—in order to assess whether reported emission reductions were offset by carbon outsourcing in the past. Our results for 2000–2014 show a more nuanced picture of carbon leakage during the Kyoto Protocol than previous studies have reported. Carbon outsourcing from developed to developing countries was dominated by the USA outsourcing to China, while the evidence for other developed countries was mixed. Against conventional wisdom, we find that, in general, countries that stayed committed to their Kyoto Protocol emission targets were either only minor carbon outsourcers or actually even insourcers—although the trend was slightly negative—indicating that binding emissions targets do not necessarily lead to carbon outsourcing. We argue that multiple carbon monitoring approaches are needed to reduce the risk of carbon leakage.

US backsliding will drag on global climate progress

2017 ◽  
Keyword(s):  
Climate Change ◽  
Global Warming ◽  
Global Climate ◽  
Paris Agreement ◽  
Donald Trump ◽  
Content Type ◽  
Federal Support ◽  
The Us ◽  
The World ◽  
Climate Action

Subject The Paris Agreement and US withdrawal. Significance President Donald Trump announced his intention to withdraw from the Paris Agreement on climate change on June 1, prompting criticism from around the world. While current pledges are unlikely to change and the agreement will not see flight or withdrawal by other countries, US withdrawal imperils the ability of the agreement’s structure to accelerate climate action to a scale necessary to meet its objective of limiting global warming to below 2 degrees centigrade by 2100. Impacts The US private sector and sub-national polities will increase their climate action, though the loss of federal support will still be felt. A future US administration could re-enter the agreement, but substantial momentum will be lost diplomatically in the intervening years. Calls for greater adaptation -- rather than mitigation -- funds from climate-vulnerable states will grow more strident.

International climate finance will be insufficient

2019 ◽  
Keyword(s):  
Gold Standard ◽  
Global Climate ◽  
Paris Agreement ◽  
Gender Mainstreaming ◽  
Climate Finance ◽  
Content Type ◽  
Initial Capital ◽  
Green Climate Fund ◽  
International Climate ◽  
Private Sector Engagement

Subject Green Climate Fund. Significance The Green Climate Fund (GCF) held its first replenishment conference in late October, seeing 9.78 billion dollars pledged for the next four years of operations. That amount exceeds the initial capital pledged in 2014, relieving fears that the impending US withdrawal from the Paris Agreement in 2020 might drag down confidence in the Fund. This public source of climate finance is politically important in catalysing action in developing countries. However, overall global climate finance is still falling far short of the amounts required to meet the Paris Agreement goals. Impacts ‘Gold standard’ requirements for GCF project approval will push institutions to raise standards in areas such as 'gender mainstreaming'. Civil society groups are beginning to assess more systematically the effectiveness of different climate finance approaches. Deeper private sector engagement will be a major GCF future focus area, with co-financing leveraging additional investment.

The climate change problem: is an LNG sectoral agreement part of the solution?

2013 ◽  
Vol 53 (1) ◽  
pp. 135
Author(s):  
David Hodgkinson
Keyword(s):  
Climate Change ◽  
Global Economy ◽  
Global Climate ◽  
Climate Impact ◽  
Policy Changes ◽  
Political Ambition ◽  
Form Part ◽  
Climate Action ◽  
International Climate ◽  
Change Problem

Recent reports and papers reveal the scope of the global climate change problem. The Potsdam Institute for Climate Impact Research and Climate Analytics (2012) concludes the sum total of existing policies, in place or pledged, will very likely lead to warming in excess of 2°C. Additionally, a report from Vieweg et al (2012) concludes limiting global warming to below 2°C remains feasible if there is sufficient political ambition and action to introduce the required measures and policy changes now. The United Nations Framework Convention on Climate Change (UNFCCC) and its Kyoto Protocol have failed to address this climate change problem; other ways to address the problem should be considered. One alternative way forward would be to break the climate change problem into different pieces, to contemplate a more decentralised arrangement in which particular issues are discussed and negotiated—a regime complex, for example. Indeed, the UNFCCC regime may actually constrain agreement on addressing the climate change problem, and a shift away from a top-down, Kyoto-style architecture for international climate action—to a more bottom-up approach, with smaller agreements between particular groups of states and sectors—could result. An international LNG sectoral agreement could form part of such an approach, or as a stand-alone agreement, because natural gas offers the most immediate method of transitioning to a lower-emissions global economy. After examining the UNFCC/Kyoto regime and other approaches to, and frameworks for, addressing the climate change problem, this peer-reviewed paper outlines the nature of sectoral agreements and their advantages, together with the rationale for, and benefits of, a sectoral agreement for the LNG industry.

Prospects for climate governance in 2017

2016 ◽  
Keyword(s):  
Sustainable Development ◽  
Paris Agreement ◽  
Energy Capacity ◽  
Donald Trump ◽  
Climate Governance ◽  
Content Type ◽  
Climate Action ◽  
Nationally Determined Contributions ◽  
Collective Commitment ◽  
International Climate

Subject Prospects for climate governance in 2017. Significance The November 7-18 COP22 climate conference produced a new political declaration, the 'Marrakech Action Proclamation for Climate and Sustainable Development’, reaffirming the collective commitment to step up climate action to meet the temperature goal of keeping warming to below 2 degrees centigrade. Upward trends in renewable energy capacity are also promising, particularly as countries prepare to turn their nationally-determined contributions made under the Paris Agreement into reality. This progress remains fragile, however, because of uncertainty about the extent of US backtracking on international climate cooperation following the election of Donald Trump as the next US president.

scholarly journals Challenge or opportunity of climate financial fragmentation

2020 ◽  
Vol 12 (3) ◽  
pp. 289-303
Author(s):  
Chao Liang ◽  
Bai Liu
Keyword(s):  
Environmental Effects ◽  
Positive Impact ◽  
Global Climate ◽  
Generalized Method Of Moments ◽  
Collaborative Governance ◽  
Control Group ◽  
Climate Finance ◽  
Content Type ◽  
Multilateral Institutions ◽  
The Difference

Purpose This study aims to investigate the environmental effects of climate financial fragmentation in the form of emerging multilateral institutions. Design/methodology/approach Among the countries that have economic relations with China, those involved in climate finance cooperation are taken as the experimental group, and those not involved in other areas are taken as a control group. Using system generalized method of moments regression, the difference-in-differences method is used to test the environmental effects of climate finance cooperation of emerging multilateral institutions. In this way, this study explores the financial and trade mechanisms of cooperation among emerging multilateral institutions. Findings The results of this empirical study show that the cooperation of emerging multilateral institutions has a positive impact on the environment. Research results further reveal the financial and trade mechanisms of climate finance cooperation projects. When the invested countries are more likely to obtain international capital, environmental effects will be greater. However, trade intimacy could inhibit the improved environmental effects. Originality/value This research is one of the few studies to test the environmental effects of climate financial fragmentation empirically. This study provides a better understanding of the multilateral cooperation of emerging economic entities and China’s climate finance policy, thus providing evidence for the collaborative governance of global climate finance.

The alignment of global equity and corporate bonds markets with the Paris Agreement

2019 ◽  
Vol 20 (4) ◽  
pp. 439-457 ◽  
Author(s):  
Jakob Thomä ◽  
Michael Hayne ◽  
Nikolaus Hagedorn ◽  
Clare Murray ◽  
Rebecca Grattage
Keyword(s):  
Climate Models ◽  
Global Climate ◽  
Paris Agreement ◽  
Corporate Bond ◽  
Climate Scenarios ◽  
Financial Flows ◽  
Content Type ◽  
Scenario Analyses ◽  
Accounting Principles ◽  
Asset Classes

Purpose To comply with the adopted Paris Agreement, global finance flows must be measured against climate scenarios consistent with possible pathways towards limiting global warming to 2°C or less. For this, there must be proven and accepted accounting principles for assessing financial plans of climate relevant actors against climate models. As there are a variety of data sources describing the financial plans of relevant actors, these principles must accommodate a variety of reported information, while still yielding relevant metrics to different stakeholders. The paper aims to discuss these issues. Design/methodology/approach A set of accounting principles tested by governments, financial supervisory bodies and both institutional investors and mangers, covering global-listed equity and corporate bond investment is described. Findings The application illustrates that a common set of accounting principles can act across both asset classes and provide relevant metrics to multiple stakeholders. Research limitations/implications The principles require data of varying quality and are ultimately unverified. Thus, the definitive quality of the output metrics is uncertain and is yet to be characterized. The principles are yet to be applied to the credit market as the information is seldom publicly available, but it too plays an important role in the required market transition and therefore must be incorporated into these guiding principles of analysis. Practical implications The principles allow for standardised assessment of financial flows of equity and corporate debt with global climate scenarios. Originality/value It illustrates the acceptance of a common set of accounting principles that is relevant across different actors and asset classes and summarizes the principles underlying the first climate finance scenario analyses.

scholarly journals Financing Climate Action and the COVID-19 Pandemic: An Analysis of 17 Developing Countries

2021 ◽  
Author(s):  
Natalia Alayza ◽  
Molly Caldwell
Keyword(s):  
Developing Countries ◽  
Natural Disasters ◽  
Developed Countries ◽  
Paris Agreement ◽  
Climate Finance ◽  
Needs Assessments ◽  
Climate Action ◽  
Nationally Determined Contributions ◽  
Available Information

To meet the Paris Agreement’s long-term goals, it is crucial that developed countries support developing countries in achieving their Nationally Determined Contributions (NDCs) and mobilizing the required climate finance. For this paper, we analyzed the impacts of the COVID-19 pandemic on climate finance and climate action implementation in 17 developing countries, drawing on available information from climate-finance tracking tools, reports, and climate needs assessments. Our analysis shows a decrease in climate finance flowing to developing countries. Most of this funding took the form of loans, and developing countries have reallocated or decreased their domestic climate flows because of the high costs of responding to the pandemic. As a result, climate-related projects have been delayed. Compounding the challenge, some developing countries have had to deal with major natural disasters amid the pandemic. Improved transparency through climate-finance tracking tools could help countries more easily identify their conditional and unconditional climate needs and mobilize and deploy resources more effectively. Climate-finance availability continues to fall short of the required amount of resources to implement developing countries’ NDCs and meet the Paris Agreement goals. The COVID-19 pandemic is widening this gap. Developed countries need to strengthen their commitment to close it by increasing climate finance.

China will maintain commitment to climate action

2022 ◽  
Keyword(s):  
Developing Countries ◽  
Developed Countries ◽  
Climate Finance ◽  
Political Pressure ◽  
Content Type ◽  
Joint Declaration ◽  
Bilateral Relations ◽  
Climate Targets ◽  
Low Profile ◽  
Climate Action

Significance The China-US joint declaration to enhance climate cooperation, made on the final day of the summit, gives cause for optimism, despite bilateral relations worsening overall. China’s low profile at the COP26 climate summit in Glasgow last November should not be taken as indicating that the country is wavering on its commitment to climate action. Impacts There will be strong political pressure within China to meet climate targets ahead of time. China’s announcement that it will no longer finance overseas coal projects is a clear signal of support for the greening of BRI investments. Beijing will continue pushing for developed countries to meet climate finance commitments to developing countries.

What we can learn from the parallels between the COVID-19 and the future climate change crises

2020 ◽  
Author(s):  
Rubén D. Manzanedo ◽  
Peter Manning
Keyword(s):  
Climate Change ◽  
Global Economy ◽  
Global Climate ◽  
Future Climate Change ◽  
Substantial Portion ◽  
Preventative Measures ◽  
The Future ◽  
Behavioral Norm ◽  
Climate Crisis ◽  
Global Population

The ongoing COVID-19 outbreak pandemic is now a global crisis. It has caused 1.6+ million confirmed cases and 100 000+ deaths at the time of writing and triggered unprecedented preventative measures that have put a substantial portion of the global population under confinement, imposed isolation, and established ‘social distancing’ as a new global behavioral norm. The COVID-19 crisis has affected all aspects of everyday life and work, while also threatening the health of the global economy. This crisis offers also an unprecedented view of what the global climate crisis may look like. In fact, some of the parallels between the COVID-19 crisis and what we expect from the looming global climate emergency are remarkable. Reflecting upon the most challenging aspects of today’s crisis and how they compare with those expected from the climate change emergency may help us better prepare for the future.

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